Who Invests in Municipal Bonds?
Municipal Bonds are a great tax shelter for high tax paying investors. The advantage of this investment is that the income earned on the coupon of most municipal bonds is not subject to federal income taxes. That is why municipal bonds are commonly referred to as "tax-frees" or "tax exempt" bonds. The federal legislation that has conferred this tax exemption is found in section 103(a) of the Internal Revenue Code of 1954. In addition, most states do not tax coupon income from municipal bonds issued within their own borders. Therefore, a New York City Bond owned by a New York City resident is exempt from New York City, New York State and Federal income taxes.
Our Portfolio Management Team
Atlantic Financial has an alliance with a full service municipal bond portfolio management team. These
bond portfolio management professionals create and manage individual municipal bond portfolios to meet the specific financial objectives of high-taxed investors and their families. This service is fee-based.
Atlantic Financial sells no in-house products nor do we trade for our own account. Our municipal bond portfolios are managed in a tax-efficient, conservative style that emphasizes the monitoring and controlling of risk. We invest only in highly marketable investment grade credits.
For More Information on Bond Portfolios,
please see:
Municipal Bonds Portfolio Selection and
Types of Bond Portfolios
For more information about our municipal bond portfolios or to have us answer any questions you may have
please call 1-800-559-2900, email us
(please be sure to include your name and phone number in your email),
or use this short form to contact us:
Municipal Bonds FAQ
| Tax-Table / Credit Ratings Table |
Portfolio Real Life Examples
 Disclosures
a) Tax
sensitive investing may not provide as high a return as other
investments before consideration of federal income tax consequences.
b) Bonds contain interest rate
risk (as interest rates rise bond prices usually fall); the risk of
ssuer default; and inflation risk. The municipal market is volatile and
can be significantly affected by adverse tax, legislative, or political
changes and the financial condition of the issuers of municipal
securities. Interest rate increases can cause the price of a debt
security to decrease. A portion of the dividends you receive may be
subject to federal, state, or local income tax or may be subject to the
federal alternative minimum tax. A portion of the funds income may be
subject to state taxes, local taxes and the federal alternative minimum
tax.
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